U.S. Navy Orders Two More Littoral Combat Ships

The U.S. Navy's Littoral Combat Ship program continued its shift into series production with the announcement March 17 that two more ships have been ordered.

Lockheed Martin and Austal USA each received new contracts March 17 to build an LCS ship. Lockheed's third ship, the Fort Worth, was launched in December at Marinette, Wisc. (Navy via Lockheed Martin)

The announcement follows by less than three months the previous award of two ships on Dec. 29.

Under the new contracts, Lockheed Martin received a $376.6 million contract modification to build the yet-to-be-named LCS 7. Based on the steel-hull design of LCS 1, the ship will be built at Fincantieri's Marinette Marine in Marinette, Wis. The work is expected to be completed by April 2016.
Austal USA's deal is for $368.6 million for LCS 8. Austal builds its LCS 2-class all-aluminum ships at Mobile, Ala., and work on that contract is expected to be completed by October 2015.
The contract awarded Dec. 29 to Lockheed for LCS 5 was for $437 million, while Austal's LCS 6 contract was for $432 million.
The contracts are far below the congressional cost cap of $480 million for LCS ships. Sean Stackley, the Navy's top acquisition official, said at the time of the December contract award that the average per-ship target price for Lockheed ships is $362 million, with a goal of $352 million for each Austal ship.
Congress on Dec. 21 approved the Navy's request to buy more ships of each design, shifting from the earlier plan to choose a single type. The Dec. 29 contracts to each shipbuilding team were for one ship, paid for with 2010 funds, with options for nine more. The March contracts are the first options to be exercised, and are funded under the 2011 continuing resolutions, which continue programs that were in effect the previous year.
Fort Worth (LCS 3) was launched Dec. 4 at the Marinette shipyard. Austal plans to launch the Coronado (LCS 4) this year.
Freedom (LCS 1), commissioned in November 2008 as the first Lockheed LCS, is at its home port of San Diego undergoing an overhaul, according to the Navy. The Independence (LCS 2), the first of Austal's breed, was commissioned in January 2010 and is undergoing tests and trials at Mayport, Fla.
The Navy intends to field a total fleet of 55 LCS ships.

USAF to Tightly Control Tanker Requirements Changes

U.S. Air Force leaders are taking draconian steps to ensure the service's prized Boeing KC-46A tanker program stays in line.

U.S. Air Force leaders said its KC-46 program will be scrutinized microscopically. (Boeing)

To protect the aerial refueling plane from ever-expanding requirements, changes will not be allowed except at the "highest level," Air Force Secretary Michael Donley told the Senate Armed Services Committee March 17.

Gen. Norton Schwartz, Air Force chief of staff, who was testifying alongside Donley, added that the KC-46 program would be scrutinized "microscopically" to make certain the "offeror delivers what he promised.
"The level of approval for engineering change orders is not going to be at the program office level," Schwartz said.
Though it has yet to be decided who will have final authority to approve such changes, it might be at the very top level of the Air Force leadership.
"It might be at our level," Schwartz said. "The bottom line is, we intend to maintain discipline on this thing."
Analysts applauded the Air Force's move. Historically, contractors would bid low to win competitions and then use the engineering change order mechanism to avoid fulfilling their contractual obligations, said Loren Thompson, an analyst at the Lexington Institute, Arlington, Va.
"It used to be a common practice in the industry that people would bid low and then try to use engineering changes to restore [profit] margins on the program," he said.
With the new approach, the Air Force cuts off that loophole for any potential contractor, Thompson said.
Byron Callan, an analyst at Capital Alpha Partners in New York, also applauded the move.
"That's pretty prudent on their part. … It's the only way they're going to keep the tanker at the cost that it was bid for," he said.
"It may not be great from a Boeing standpoint," Callan added.
However, in cases where a technology is particularly cutting edge, such an approach could backfire.
"If you were to limit engineering changes on something revolutionary like the F-35 [Joint Strike Fighter], you could really foul up the program," Thompson said.
Callan agreed that the new approach to the tanker program would not be a good idea if it were to be applied to all Air Force contracts.
"Trying to think you can just freeze a design that will last five or six years, that's locking yourself into obsolescence," he said.

U.S. Army Awards Deal for Afghan Training Helos

PHOENIX - MD Helicopters Inc. of Mesa has been awarded a $186 million contract by the U.S. Army to build rotorcraft for training exercises in Afghanistan.
The deal is good news both for the helicopter manufacturer, which has been on the rebound since it nearly collapsed financially six years ago, and for financially strapped Mesa, which is aggressively pursuing industrial recruitment and expansion.

The contract calls for six MD 530F helicopters to be built initially as the Army's primary training aircraft in Shindand, Afghanistan, according to the Army. As many as 54 aircraft would be manufactured at the company's Falcon Field Airport plant in Mesa over the life of the four-year contract.
Advisers from the U.S., United Kingdom and New Zealand have conducted joint training with Afghan Air Force student pilots and Afghan national army non-commissioned-officer trainees at Shindand air base, according to a NATO-Afghanistan news release.
"This is so huge for us, not just in terms of the dollar amount," said Lynn Tilton, MD's CEO and chairwoman. "It's a vote of confidence from the government and the U.S. Army, and I believe it's the first such contract since MD was owned by Boeing years ago."
She said the contract will create jobs, but she would not say how many.
"We will need to hire people," Tilton said. "But we need to be very intelligent about that, coming off the industry's downturn."
The contract also provides some stability for the company's current well-paid workforce.
The contract is a significant development that could lead to additional work for the company from the Defense Department, Mesa Mayor Scott Smith said.
Although MD is known for its extensive line of commercial helicopters, it also manufactures military aircraft and is in discussions with The Boeing Co. on a contract to collaborate on production of the Boeing AH-6i light-attack/reconnaissance helicopter for the global market.
Boeing builds its Apache helicopters at sprawling facilities just northwest of Falcon Field.
Company officials said the MD 530F is a perfect fit for the Army training mission.
The helicopter is equipped with the 650 shaft horsepower Rolls-Royce 250-C30 engine and longer main-rotor blades. It is described as the company's finest high-altitude performer in extremely hot weather.
Company officials said the helicopter also has greater takeoff power at significantly higher hover-ceiling levels than its competitors, and is known for its speed, agility, low direct operating costs and the ability to operate with ease in confined spaces.

NATO Chief Hopes Poland EU Presidency Boosts Russia Ties

WARSAW - NATO Secretary General Anders Fogh Rasmussen said March 17 he hoped Poland would use its upcoming presidency of the European Union to enhance the military alliance's ties with Russia.
"Poland can ... play a special role in improving the relationship between Russia and NATO in the European Union and that would be beneficial in our endeavors to improve the overall Euro-Atlantic security," Rasmussen said at a joint press conference with Polish President Bronislaw Komorowski in Warsaw.

"We look very much forward to the Polish presidency of the European Union in the second half of this year," he said.
Having joined the European Union in 2004, Poland will take over the 27-member bloc's rotating presidency on July 1.
The NATO chief was in the Polish capital to mark the 12th anniversary of Poland's NATO entry along with fellow ex-communist states Hungary and the Czech Republic, a move that outraged their Soviet-era master Russia.
Poland's ties with Moscow have remained rocky since it peacefully shed communism in 1989, but its increasing importance as an EU member has seen Warsaw take on a conciliatory tone towards the Kremlin.
Rasmussen said he also thought Poland could play a role in enhancing cooperation between NATO and the European Union.
"Poland is a strong ally and has a strong position within the European Union and based on that Poland can play a special role in advancing our mutual cooperation," Rasmussen added.

Divided NATO Presses Ahead with Libya Military Plans

BRUSSELS - NATO's chief urged the U.N. on March 17 to quickly act on Libya to stop Moammar Gadhafi from crushing rebels, but the alliance was divided even as it pressed ahead with plans for a no-fly zone.
"If Gadhafi prevails it will send a clear signal that violence pays. That would be unacceptable from a humanitarian and democratic perspective," Secretary General Anders Fogh Rasmussen said.

"But time is running out. The sooner the United Nations can reach an agreement the better," he said on his Facebook page.
France, Britain and the United States are pressing for a U.N. Security Council vote Thursday on a resolution that includes a no-fly zone to prevent Gadhafi from using his air force to bomb his population.
Russia, Germany and other countries of the 15-member Security Council have expressed opposition or doubts about military action in Libya.
"I can't imagine the international community and the United Nations will stand idly by if the Libyan regime continues to attack its own civilian population systematically," Rasmussen told reporters during a visit in Warsaw.
He said attacks by Gadhafi's regime on civilians "may amount to crimes against humanity."
NATO military officials presented to ambassadors this week a range of plans for a potential role in Libya, including assisting humanitarian relief efforts, enforcing an arms embargo and grounding the Libyan air force, diplomats said.
"NATO stands ready to protect the civilian population if there is a demonstrable need, clear legal basis and strong regional support," Rasmussen said.
But divisions exist within the 28-nation alliance as well, with Germany and Turkey voicing opposition to a military intervention.
In addition, France, which has taken a hawkish stance in the Libyan crisis, "does not want NATO in the front line," a NATO military official said.
This could leave NATO, already with its hands full leading the war in Afghanistan, on the sidelines in a no-fly zone in Libya.
France and Britain, which has also led clarion calls for a no-fly zone, could end up taking action outside the NATO club alongside Arab nations.
The United States has also shown "little enthusiasm" in trying to bring Turkey and Germany in line with the rest of the alliance, the military official said.
The official said the Americans believe that a no-fly zone would not be enough to defeat Gadhafi, and that ground troops would be needed, an option the United States would not take part in given its commitments in Iraq and Afghanistan.
U.S. ambassador to the United Nations Susan Rice suggested as much on March 16, saying that action might have to "go beyond a no-fly zone at this point, as the situation on the ground has evolved, and as a no-fly zone has inherent limitations in terms of protection of civilians at immediate risk."
NATO ambassadors could meet again March 18 and this weekend to review the alliance's contingency plans for Libya and decide the next steps, diplomats said.
"NATO wants these operational plans to be ready by the end of the week or early next week," an alliance diplomat told AFP on condition of anonymity because of the sensitivity of the planning.
The alliance "is accelerating the preparations, but no green light has been given," the diplomat said.
Even if the U.N. approves a no-fly zone and all allies agree to back the move, it would take two weeks for NATO to be operational, the NATO military official said, adding: "The chances that NATO will have a role are minimal."

Russia's $650B Arms Drive Misguided: Developer

MOSCOW - A top Russian arms developer on March 17 slammed the country's new $650 billion rearmament drive as a misguided attempt to mass produce old systems that have little use in modern warfare.
The military last month unveiled the details of a new procurement plan through 2020 that analysts said placed a strong emphasis on heavy nuclear missile spending that could keep Russia's parity with the United States.

The long-discussed program aims to fill major gaps in a dilapidated Soviet-era force that Western experts believe is no longer capable of engaging in large-scale warfare.
But the head of a prestigious Moscow institute that is designing one of Russia's latest ballistic missiles said the new drive could potentially leave the country decades behind the West.
"I feel bad for the state when they propose this senseless spending," Moscow Institute of Thermal Technology head Yury Solomonov was quoted as saying by Interfax.
Solomonov noted that the United States was now pouring money into the development of new X-37 and X-51 hypersonic space vehicles, "something that we simply do not do."
Instead, the new program intends to "reproduce things that were made decades ago for absolutely unlikely scenarios."
Solomonov said much of the spending was being funneled into the development of a new line of liquid-fuelled nuclear missiles whose use vanished with the end of the Cold War.
"I would like to assure you that it is based on delivery vehicle technology that is about 30 years old," the developer said.
The program unveiled by Deputy Defense Minister Vladimir Popovkin sees Russia building 100 new ships and acquiring 1,000 helicopters along with 20 submarines and more than 600 warplanes.
But the exact breakdown of the spending plan was not revealed and analysts said much of the money appeared earmarked for missile programs that seek to ensure Russia's ability to penetrate a new European missile shield mooted by NATO.

CNO Assesses Russian, Chinese Navies

"The Russian Navy is moving again."

The U.S. Navy seeks ways to work with the Chinese and Russian navies, said Adm. Gary Roughead, chief of naval operations. (MCS Tiffini Jones Vanderwyst / Navy)

That was the description given Wednesday by Adm. Gary Roughead, the U.S. Navy's chief of naval operations (CNO), when asked for his assessment of America's former Cold War opponent.

"The Russian Navy still has great ambition, still has great pride," he said.
The collapse of the Soviet Union significantly reduced the navy, Roughead noted, with most shipbuilding programs coming to a halt or dragging out.
"That has stopped in recent years," he said. An improving Russian economy will mean "you're going to see an increase in their capability and capacity, with new shipbuilding programs taking hold." Roughead noted the recent move by Russia to acquire several French-designed Mistral-class amphibious ships as an indication of rising interest in increased operations.
The navy "will now begin to rebuild itself," he said, "and bring more modern capability to bear and operate more widely."
Roughead did not speak of a growing Russian naval force as a threat.
"I believe we should work closely with the Russian Navy to see where we can work together," he said, and cited operations with Russian ships working to counter pirates off Somalia.
Roughead was asked for his assessment of the Russian and Chinese navies during an appearance before the Senate Appropriations Committee's defense subcommittee. It was the last of several hearings before the House and Senate to present the 2012 budget request.
The Chinese Navy is the fastest-growing in the world today, Roughead said.
"We see their submarine fleet expanding, their surface combatants expanding. But it's also how they're using their command and control facilities," he said, "and the nature of expanding beyond the first island chain," the ring of islands that surround the Chinese mainland.
The strategic objectives of China's naval expansion seem to be same "that nations and navies have had throughout history," Roughead said. "As economies rise it follows there will be a strong navy."
"They want to ensure their sea lanes are able to be used," he told Sen. Dan Coats, R-Ind., who specifically asked about China's anti-carrier missile capability.
"There has been a lot of discussion about the Dong Feng 21 missile," Roughead acknowledged. "But the DF 21 is no more an anti-access weapon than a submarine is. I would argue that you can put a ship out of action faster by putting a hole in the bottom than by putting a hole in the top."
Noting the superiority of the U.S. Navy's Virginia-class attack submarines over the several types China is building, Roughead declared that "even though the DF 21 has become a newsworthy weapon, the fact is our aircraft carriers can maneuver, and we we have systems that can counter weapons like that."
"My objective," in regards to the Chinese, Roughead said, "is to not be denied ocean areas were can operate, or not be restricted in our ability to operate."
The Chinese being constantly scrutinized as to their intentions, Roughead told Coats.
"I think it's important to gain insight into what their intent is," he said. "So we watch developments very closely."
China's designs on the Arctic Ocean were also questioned by Sen. Lisa Murkowski, R-Alaska, who asked how the Navy planned to respond to increased activity in the region due to climate change.
"There is no question in my mind that the Arctic is changing," Roughead said. But along with working closely with the Coast Guard, the CNO again observed that "the most important thing is to become party to the convention of the Law of the Sea" treaty, long hung up in the Senate. "If we are not party to that treaty we will not have a seat at the table as this unfolds."